Financial Crime World

Dominican Republic Takes Significant Steps to Combat Money Laundering and Terrorist Financing

The Dominican Republic has made significant strides in recent years to combat money laundering and terrorist financing. To achieve this goal, the country has ratified several international treaties and conventions aimed at preventing illicit financial activities within its borders.

International Cooperation and Treaties

  • The Inter-American Convention Against Corruption (1996)
  • The United Nations Convention Against Transnational Organized Crime (2002)

In 2017, the Dominican National Congress implemented a new Anti-Money Laundering and Terrorist Financing Act, which replaced the outdated 2002 law. This New Law aims to modernize and align the country’s legal framework with contemporary international standards.

Objectives of the New Law

  • Enhanced regulation
  • Transparency in financial transactions
  • International collaboration

The primary objectives of the New Law include regulating money laundering and terrorist financing more effectively, promoting transparency in financial transactions, and facilitating cooperation with international organizations. This legislation seeks to safeguard both foreign and domestic investments by providing mechanisms for imposing sanctions on individuals involved in illegal financial activities.

Key Regulators and Agencies

  • Financiero Analysis Unit (UAF): The primary anti-money laundering regulator in the Dominican Republic, responsible for:
    • Receiving, requesting, analyzing, and disclosing reports of suspected financial activities
    • Providing technical assistance to other competent authorities
  • National Anti-Money Laundering Committee: Coordinates policies for preventing, discovering, and repressing laundered assets, including advising on legal and administrative actions and overseeing annual budgets.
  • Custody and Management of Seized Assets Office: Safeguards, administers, and sells confiscated assets related to crimes outlined in the law, with authority to engage in agreements with domestic and international private enterprises.
  • Additional AML regulators: Central Bank of the Dominican Republic, Superintendence of Banks, National Drug Council, and Secretariat of Finance.

Impact and Commitment

The Dominican Republic’s commitment to combating money laundering and terrorist financing is evident through its adoption of international conventions and the enactment of the New Anti-Money Laundering and Terrorist Financing Act. These efforts align the country with global AML standards, bolster transparency, and promote collaboration with international organizations. For investors, businesses, and individuals considering involvement in the Dominican Republic, these regulations provide a level of assurance and security.